On December 6, 2010, the New Jersey Senate Commerce Committee passed S.168 (the “Bill”) by a vote of 4-0, which would permit a captive insurance market to exist in New Jersey. The Bill is based on Vermont's captive insurance bill, which is viewed as the state model with the best design for the captive insurance market so far.
The Bill will now head to the New Jersey Budget and Appropriations Committee for consideration, before it heads to the floor for a full vote. It is currently anticipated that a full Senate vote will occur before the end of the year. If approved, the Bill will return to the New Jersey House of Representatives for review of the amendments made by the Senate.